An example of why we buy when there's blood in the streets

I've previously posted a strategy of a weighted DCA approach and thought I'd share how it's been over the past two months. I've modified it a little bit since but the general overview is

- I have a minimum purchase amount each time I buy

- The closer ETH price is to my predicted floor, the more I buy

- Don't buy after two consecutive green days.

- Put in a few optimistic buy orders that you think could be filled during a flash crash.

Here's what my purchases looked like: (I'll convert prices to USD for our brothers over the pond)

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ETH Purchases

Purchases were made between 16th June and 19th July.

I made a few large purchases on 16/17/18th June to get the ball rolling on the portfolio. This was just in case ETH made a bull run and I had no skin in the game. I'll include these buys (even though they don't come from the strategy I've employed) in the calculations.

19 buy orders were made and filled, one of those being a larger optimistic order at £1359/$1876 which was filled on the 25th of June.

The average purchase price of my ETH holdings is £1451.73/$2004.55, which at a current price of $3235, is a 61.4% gain.

Without the three large initial purchases that didn't come from my strategy, the average purchase price is £1390/$1919 and gave a gain of 68.58% at the current price of ETH.

There are a few reasons why this strategy works for me:

- It removes emotion from the equation;

- I can stick to it;

- It is a strategy I have based on my past 4 years of experience in the markets.

- It allows me to treat my investment like a business, not a hobby.

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TLDR;

- buy the dip

- buy more if it dip dips

- don’t FOMO in when prices are going up

- chill out and act methodically.